Bisalloy Steel Group Ltd (BIS) AI Stock Analysis

• Market Cap: AU$225.79M
• Dividend Yield: 7.62%
• Average Volume (3M): 106.17K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.30
• Revenue Growth: -0.03%
• EPS Growth: 23.78%
• Country: AU
• Employees: 819
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.17
• Shares Outstanding: 48,041,010
• 10 Day Avg. Volume: 99,496
• 30 Day Avg. Volume: 106,173
• PEG Ratio: 0.37
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 14.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: AU$5.50 ▲(12.70% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

Bisalloy Steel Group Ltd has a robust financial performance with strong profitability and a stable balance sheet. The technical analysis supports a positive outlook, although caution is advised due to potential overbought conditions. The valuation is attractive with a reasonable P/E ratio and high dividend yield, making it a solid investment within the steel industry.

Positive Factors

Improving Profitability

Sustained margin expansion and rising net profit margin signal durable operational improvements and pricing power in higher‑value steel grades. Higher gross and net margins improve cash generation potential, support reinvestment and dividends, and reflect competitive manufacturing efficiency over cycles.

Very Low Financial Leverage

Extremely low leverage and a healthy equity ratio provide financial flexibility to fund capex, weather downturns, and pursue selective growth without stressing liquidity. High ROE indicates efficient capital use, strengthening long-term resilience and ability to sustain strategic investments.

Specialty, Value-Added Business Model

Focus on proprietary, high-spec steel and processing services creates a defensible position vs commodity suppliers. Structural demand from heavy industry, mining and defence for specialized plate supports margin stability and repeat business, making revenue less tied to plain steel price cycles.

Negative Factors

Weakening Cash Flow Growth

Declining operating cash flow and negative FCF growth raise questions about working capital management and the sustainability of cash available for capex, dividends or debt reduction. Even with good FCF/net income ratio, persistent negative growth can constrain strategic flexibility.

Cyclically Sensitive End Markets

High exposure to mining, heavy industry and infrastructure makes revenue and utilization vulnerable to commodity cycles and investment lulls. Structural cyclicality can produce multi-quarter volatility in volumes and margins, complicating capacity planning and capital deployment decisions.

Input Cost and FX Pass-Through Risk

Profitability depends on passing raw material cost increases to customers and managing currency exposure on exports. If input costs spike or pricing power weakens, margins can compress; limited ability to instantly hedge FX or absorb costs risks margin erosion during adverse commodity or FX moves.

Bisalloy Steel Group Ltd Business Overview & Revenue Model

Company Description

Bisalloy Steel Group Limited engages in the manufacture and sale of quenched and tempered, high-tensile, and abrasion resistant steel plates under the BISALLOY brand name. It offers wear, structural, and armor grade specialty steels. The company also provides protection steel products. It serves mining, construction, general fabrication, and pressure vessel defense industries. The company markets its products through distributors and agents, as well as directly to original equipment manufacturers in Australia and internationally. Further, it exports to Asia, the Middle East, Europe, North America, and South America. Bisalloy Steel Group Limited was founded in 1980 and is headquartered in Unanderra, Australia.

How the Company Makes Money

Bisalloy primarily makes money by manufacturing, processing, and selling specialty steel plate products at prices that reflect the value of their mechanical properties (e.g., abrasion resistance and high tensile strength) rather than commodity steel pricing alone. Key revenue streams typically include: (1) Sales of branded wear plate and high-strength structural plate: Revenue is generated from supplying Bisalloy-produced steel plate in various grades, thicknesses, and dimensions to end-users and fabricators. The company captures margin from converting steel input into higher-value, heat-treated plate and from its proprietary grades/brand position. (2) Processing and value-added services associated with plate supply: Income is also earned from services that accompany plate sales (e.g., cutting/processing to customer specifications and logistics/supply solutions), where offered. (3) Export and distribution channels: Bisalloy earns revenue by selling into domestic Australian markets and through export/distribution arrangements in overseas markets; earnings depend on volumes, product mix, and the strength of distribution relationships. Major factors influencing earnings generally include demand from mining and heavy industry cycles, infrastructure and construction activity, defence/fabrication project activity, steel input costs and the ability to pass through price changes, capacity utilization at its plate processing/manufacturing operations, and foreign exchange movements on any export sales. Specific partnership details and the exact breakdown of revenue by stream are null.

Bisalloy Steel Group Ltd Financial Statement Overview

Summary

Bisalloy Steel Group Ltd demonstrates strong financial performance with consistent revenue growth, improved profit margins, and a low debt-to-equity ratio. However, there are challenges in cash flow growth despite stable cash generation.

Income Statement

Bisalloy Steel Group Ltd has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 21.3% in 2020 to 28.8% in 2025. The net profit margin has also improved significantly, reaching 12.8% in 2025. The EBIT and EBITDA margins have shown a positive trend, indicating strong operational efficiency. Overall, the company demonstrates robust profitability and growth in its income statement.

Balance Sheet

The company's balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.03 in 2025, indicating low financial leverage and reduced risk. The return on equity has been consistently high, reaching 24.2% in 2025, showcasing effective use of equity to generate profits. The equity ratio remains healthy, suggesting a stable financial structure.

Cash Flow

While the operating cash flow has decreased from 2024 to 2025, the company maintains a solid free cash flow to net income ratio of 0.91, indicating efficient cash generation relative to net income. However, the free cash flow growth rate has been negative, suggesting potential challenges in cash flow management. Overall, the cash flow statement shows stability but highlights areas for improvement in cash flow growth.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	153.01M	152.81M	152.86M	153.14M	117.83M	104.83M
Gross Profit	45.18M	44.05M	38.65M	32.62M	31.07M	23.35M
EBITDA	26.92M	30.88M	25.97M	19.80M	21.89M	13.51M
Net Income	19.30M	19.58M	15.74M	12.80M	14.99M	8.81M
Balance Sheet
Total Assets	118.02M	133.93M	118.58M	112.26M	106.59M	84.31M
Cash, Cash Equivalents and Short-Term Investments	2.26M	6.33M	6.30M	2.05M	1.83M	2.35M
Total Debt	11.24M	2.52M	1.08M	5.04M	11.16M	10.38M
Total Liabilities	39.64M	47.88M	41.31M	39.70M	42.30M	35.89M
Stockholders Equity	73.59M	80.94M	72.84M	67.97M	60.36M	44.96M
Cash Flow
Free Cash Flow	14.89M	12.17M	20.19M	12.06M	3.94M	11.05M
Operating Cash Flow	16.08M	13.40M	22.04M	13.09M	4.91M	12.65M
Investing Cash Flow	-1.34M	907.00K	187.00K	922.00K	-961.00K	155.00K
Financing Cash Flow	-18.51M	-14.21M	-17.91M	-11.89M	-4.51M	-9.16M

Bisalloy Steel Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BIS, the sentiment is Negative. The current price of 4.88 is below the 20-day moving average (MA) of 5.33, below the 50-day MA of 5.37, and above the 200-day MA of 4.69, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 33.05 is Neutral, neither overbought nor oversold. The STOCH value of 11.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BIS.

Bisalloy Steel Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIS	78 Outperform	AU$225.79M	7.02	25.46%	7.62%	-0.03%	23.78%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
VSL	61 Neutral	AU$927.53M	33.43	6.68%	0.86%	-12.17%	-61.32%
SGM	60 Neutral	AU$3.51B	-28.99	0.14%	1.27%	3.98%	70.79%
CIA	59 Neutral	AU$2.46B	11.40	12.63%	3.66%	0.40%	-53.09%
BSL	57 Neutral	$11.35B	6.75	2.76%	2.48%	-4.46%	-89.42%
MGX	52 Neutral	AU$507.58M	-6.44	-7.08%	―	-48.05%	-1394.34%

Bisalloy Steel Group Ltd Corporate Events

Bisalloy outlines non‑IFRS metrics and risk disclaimers in new investor presentation

Bisalloy Steel Group has released an investor presentation outlining key information on its financial reporting approach, including the use of non‑IFRS measures such as operating EBITDA, which management uses internally to assess performance and allocate resources. The company underscores that these measures should be considered alongside audited IFRS results, and cautions that they may not be directly comparable with similar metrics reported by peers.

The release emphasises extensive disclaimers around forward‑looking statements, stressing that guidance and strategic outlook are subject to significant risks and uncertainties beyond management’s control. Bisalloy also clarifies that it has no obligation to update such statements except as required by law, signalling a conservative stance on market communications and risk disclosure for investors evaluating its securities.

The most recent analyst rating on (AU:BIS) stock is a Buy with a A$7.00 price target. To see the full list of analyst forecasts on Bisalloy Steel Group Ltd stock, see the AU:BIS Stock Forecast page.

Bisalloy Steel Announces Fully Franked Interim Dividend

Bisalloy Steel Group has declared a fully franked interim dividend of AUD 0.08 per ordinary share, relating to the six-month period ended 31 December 2025. The dividend will trade ex-dividend on 9 April 2026, with a record date of 10 April 2026 and payment scheduled for 24 April 2026, signalling continued capital returns to shareholders.

The announcement underlines the company’s capacity and willingness to distribute cash to investors midway through its financial year, which may be interpreted as a sign of earnings resilience and balance sheet strength. The fully franked status enhances the dividend’s attractiveness to eligible Australian investors by allowing them to benefit from attached tax credits, potentially supporting the stock’s appeal in the income-focused segment of the market.

The most recent analyst rating on (AU:BIS) stock is a Buy with a A$7.00 price target. To see the full list of analyst forecasts on Bisalloy Steel Group Ltd stock, see the AU:BIS Stock Forecast page.

Bisalloy Steel Holds Revenue Steady as Profit Eases, Maintains Strong Dividend Payouts

Bisalloy Steel Group reported half-year 2026 revenue of $71.1 million, a marginal 0.3% increase on the prior corresponding period, while net profit after tax attributable to members fell 3.2% to $8.5 million. Operating EBITDA excluding foreign exchange effects declined 3.1% to $14.2 million and basic earnings per share eased to 17.6 cents, though net tangible assets per share improved to 152.8 cents, reflecting a stronger balance sheet.

The company continued its shareholder returns with a fully franked final dividend of 16.5 cents paid in October 2025, a special fully franked dividend of 16.4 cents in December 2025, and the declaration of an 8.0 cent fully franked interim dividend payable in April 2026. While overall profit metrics softened slightly, the stable revenue, enhanced asset backing, and ongoing fully franked dividends indicate resilient underlying operations and a continued focus on capital management for investors.

The most recent analyst rating on (AU:BIS) stock is a Buy with a A$7.00 price target. To see the full list of analyst forecasts on Bisalloy Steel Group Ltd stock, see the AU:BIS Stock Forecast page.